Originally posted by michael1983l
The DOW jones is currently in freefall.
Originally posted by SpaceMonkeys
reply to post by camaro68ss
The only thing I can think of is a revolution in energy, but if that doesnt happen then where does it lead us?
The current economic system is completely flawed and needs to change...
The Topix slid 2.1 percent to 694.22 at 12:40 p.m. in Tokyo, heading for the lowest close since Dec. 2, 1983, and dropping below levels last seen since the global financial crisis following the 2008 collapse of Lehman Brothers Holdings Inc. About 12 stocks fell for each that rose on the measure. The Nikkei 225 Stock Average (NKY) dropped 2 percent to 8,272.00.
“This is a panic selloff,” said Koichi Kurose, chief economist at Resona Bank Ltd., Japan’s fifth-largest lender by market value. “Action from policy makers is the only thing that will calm the market. The market is pricing in a deterioration in the U.S. economy through summer.” www.bloomberg.com...
...Since the Second World War and through the Bretton Woods system to today’s monetary system, the dollar and the U.S., with its power and wealth, has ensured its continued success, sometimes against basic fundamental reasoning –such as the ability of the U.S. to just print dollar to cover its Trade Deficits on an ongoing basis, a sort of Tax on the rest of the world. Indeed, the dollar, with its link to oil, is the tree-trunk of world money with all other currencies acting almost as branches growing out of that tree. The steps being taken by China now is another tree (currently a sapling) growing alongside it and eventually no longer dependent on it. The worry is that this new tree is sapping the old tree of its strength. We are certain that China will do all in its power to ensure it minimizes the influence the U.S. has over its financial system.
The dangerous period for the two trees is when the new sapling is not strong enough to stand alone and the old tree is ailing. This is the time when support is needed for both. That support has to be independent of both for it to give effective support. That support must convince all in the monetary world that it will give enough inherent strength to shore up the weaknesses of both. But at the same time this support must be a common denominator throughout the financial world.
If the transition of power and through changes is smooth, then a new shape to the world’s money will be easily accepted. But in all of man’s history, such transitions have been far from smooth or peaceful; they’ve been marred by confrontation and breakdown and usually both. We see this future for the monetary world in the face of these developments.
With the debt debacles on both sides of the Atlantic, the developed world’s monetary system is vulnerable to such pressures as never before. The monetary system now faces structural pressures that are bound to lead to turmoil and deeper crises, not simply inside nations, but ones that will shake up global foreign exchanges and breed more and more uncertainty. The last few years of financial crises in the developed world will seem tame by comparison...
Originally posted by pause4thought
Step back and watch as a once cosy relationship turns into a Shakespearian plot of intrigue and skullduggery.
The United States will move the majority of its warships to the Asia-Pacific in coming years and keep six aircraft carriers in the region, Defense Secretary Leon Panetta said on Saturday, giving the first details of a new U.S. military strategy.
Speaking at an annual security forum in Singapore, Panetta sought to dispel the notion that the shift in U.S. focus to Asia was designed to contain China's emergence as a global power.
China will move the majority of its warships to the north eastern Pacific in coming years and keep six aircraft carriers in the region Minister of National Defence, General Liang Guanglie said on Saturday, giving the first details of a new Chinese military strategy...
"...We're not naive about the relationship and neither is China," Panetta told the Shangri-La Dialogue attended by senior civilian and military leaders from about 30 Asia-Pacific nations.
We also both understand that there really is no other alternative but for both of us to engage and to improve our communications and to improve our (military-to-military) relationships," he said. "That's the kind of mature relationship that we ultimately have to have with China."
Anyone else starting to feel like Germany is just trying to fleece dying systems as best as it can before they leave the Euro?
If it is true that Greeks can't afford to feed their prisoners right now, with zero stockpiles for that purpose, then is more austerity really all that realistic an option or is it more like robbing the downed man?
According to the theory, government spending can be used to increase aggregate demand, thus increasing economic activity, reducing unemployment and deflation. For example, when the unemployment rate is very high, a government can use a dose of expansionary monetary policy.
Keynes argued that the solution to the Great Depression was to stimulate the economy ("inducement to invest") through some combination of two approaches: 1: A reduction in interest rates, and 2: government investment in infrastructure. Investment by government injects income, which results in more spending in the general economy. This in turn stimulates more production and investment involving still more income and spending and so forth. The initial stimulation starts a cascade of events, whose total increase in economic activity is a multiple of the original investment.
TORONTO/BERLIN (Reuters) - Finance chiefs of the Group of Seven leading industrialized powers will hold emergency talks on the euro zone debt crisis on Tuesday in a sign of heightened global alarm about strains in the 17-nation European currency area...
..."The real concern right now is Europe of course - the weakness in some of the banks in Europe, the fact they're undercapitalised, the fact the other European countries in the euro zone have not taken sufficient action yet to address those issues of undercapitalisation of banks and building an adequate firewall," Flaherty told reporters.
The disclosure of the normally confidential teleconference came as European Union paymaster Germany said it was up to Spain, the latest euro zone country in the markets' firing line, to decide if it needed financial assistance, after media reports that Berlin was pressing Madrid to request aid...
A G7 source, speaking on condition of anonymity because of the sensitivity of the issue, said there were concerns about the risk of a bank run in Spain, which is struggling to recapitalise nationalised lender Bankia and smaller banks stricken by the collapse of a property bubble.
"There is concern on whether there will be a bank run in Spain that could have repercussions beyond the euro zone," the source told Reuters...
Madrid plans to issue 1-2 billion euros in 10-year debt on Thursday in a key market test.
There was strong demand for Spanish bonds at an auction on Thursday, which was seen as a key test of the country's ability to raise funds, but it had to pay a higher interest rate.
The rate on the 10-year bonds was 6.044%, up from the 5.743% paid when bonds were last sold in April...
...The head of China's sovereign wealth fund, which invests China's huge reserves around the world, said it was scaling back European investments due to the risk of a eurozone break-up...